A Special Way to Support WNIJ and WNIU if You Are 70 ½ or Older
If you have an IRA, must take a Minimum Required Distribution, don’t need the money, and don’t want to pay additional taxes on the distribution … here’s your solution. But, you must act quickly!
The IRA Charitable Rollover was first enacted as part of the Pension Protection Act of 2006 and has just been permanently extended in the Tax Relief Act of 2015. Now, you can make a charitable gift directly from your IRA while excluding that gift amount from your adjusted gross income (AGI.)
Advantages for you:
- You can use an overlooked asset to make a gift to Northern Public Radio.
- The IRA Charitable Rollover permits you to make donations directly to WNIJ and WNIU from your IRA without counting the distribution as part of your AGI and, without paying taxes on it.
- The distribution IS NOT recognized as income for federal income tax purposes.
- The distribution DOES count towards your minimum required distribution for the year.
- You must be 70-1/2 or older and required to make an annual distribution from your IRA.
- Your total combined charitable IRA rollover contribution cannot exceed $100,000 in any one year.
- Charitable contributions from your IRA must go directly to Northern Public Radio. Contributions to donor-advised funds and private foundations, except in narrow circumstances, do not qualify for tax-free IRA rollover contributions.
- Distributions can only be made from traditional Individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are not eligible for the tax-free treatment. Distribution must be made directly from the IRA trustee payable to Northern Public Radio.
- You cannot receive any goods or services in return for your charitable IRA rollover contribution in order to qualify for tax-free treatment.
- You will receive an acknowledgement from Northern Public Radio for each rollover contribution.
We recommend that you seek advice from your accountant or investment advisor prior to making a charitable rollover as personal circumstances can have a significant impact on whether charitable rollovers are advantageous to you. In order to benefit from a 2015-eligible IRA contribution, contact your IRA administrator as soon as possible as some administrators may place a deadline on requesting transfers. IRA Charitable Rollover Gifts must be made by December 31, 2015 for 2015 tax purposes. (All gifts made from your IRA any time during 2015 qualify for this tax-free treatment retroactively.)